Use the Following Information for Questions

question 118

Multiple Choice

Use the following information for questions
On January 1, BearBack Corporation had 300,000 common shares issued.On April 10, the company declared a 10% stock dividend to be distributed on April 30.The market value of the shares was $7 on April 10 and $10 on April 30.
-The entry to record the transaction of April 10 would include a

• A)credit to Retained Earnings for $30,000.
• B)credit to Cash for $210,000.
• C)credit to Stock Dividends Distributable for $210,000.
• D)debit to Stock Dividends Distributable for $300,000.

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Definitions:

Minimum Cash Balance

The lowest amount of cash that a company aims to maintain in its accounts to adequately meet its operational and financial obligations.

Borrowing

The act of obtaining funds from a lender under the agreement to pay back the principal amount along with interest or other charges.

Inventory Levels

The quantities of goods and materials a company holds for the purpose of resale or production at any given point in time.

Raw Material

The basic, unprocessed inputs used in the production of goods, often transformed through manufacturing processes into finished products.